Recently, Beijing Tongmei Crystal Technology Co., Ltd. (hereinafter referred to as: Beijing Tongmei) has resumed the IPO review process on the Science and Technology Innovation Board and is currently in the inquiry stage. It is reported that Beijing Tongmei is mainly engaged in the research and development, production and sales of indium phosphide substrates, gallium arsenide substrates, germanium substrates, PBN materials and other high-purity materials.
Among them, indium phosphide substrates, gallium arsenide substrates, and germanium substrates can be used to produce radio frequency devices, optical modules, LEDs (MiniLED and Micro LED), lasers, detectors, sensors, space solar cells and other devices. Communication, data center, new generation display, artificial intelligence, unmanned driving, wearable device, aerospace and other fields have broad application space;
PBN materials and other high-purity material products ensure the high-quality supply of upstream materials for the company semiconductor substrates from the source, and are widely used in compound semiconductors, semiconductor equipment, OLED, LED and other industries.
It can be seen from this that the total revenue of indium phosphide substrates and gallium arsenide substrates is showing an upward trend, and the revenue in 2019, 2020, and January-June 2021 accounted for more than 60%. It is reported that Beijing Tongmei is one of the few companies in the world that has mastered the production technology of 8-inch gallium arsenide substrate and 6-inch indium phosphide substrate. As downstream applications such as 5G communications and next-generation displays usher in a new round of investment cycle, the new production lines of downstream customers are likely to switch to larger sizes, and companies with large-size III-V compound semiconductor substrate supply capabilities are expected to Gain market opportunities in the new round of industry cycles.
The GaAs semiconductor material project is divided into two sub-projects, the GaAs (crystal) semiconductor material project and the GaAs (chip) semiconductor material project. Among them, the GaAs (crystal) semiconductor material project plans to use the raised funds of 366,887,300 yuan to invest. , Gallium arsenide (wafer) semiconductor material project plans to use its own capital investment.
The products of the GaAs semiconductor material project are mainly 2, 3, 4, 5, 6, and 8-inch GaAs substrates. In terms of production capacity, the project will build an annual production capacity of 500,000 8-inch GaAs substrates and an annual output of 4 million GaAs substrates (equivalent to 2 inches). The main downstream uses of the project products are: radio frequency devices (such as mobile communication (mobile phone) power amplifiers, high-performance transistors and satellite communication devices, etc.), LEDs (MiniLED, Micro LED), lasers (high-power pump, vertical cavity surface emitting laser) and other devices.
Beijing Tongmei pointed out that the GaAs semiconductor material project will enable the company to achieve mass production of 8-inch GaAs substrates for new products, and expand the production scale of 2-6-inch GaAs substrates, providing the company with large-scale GaAs substrates. The layout of substrate products in the field of Mini LED and Micro LED has created conditions, which will also help consolidate the company global market share.
It is worth noting that AXT directly holds 85.51% of the shares of Beijing Tongmei and is the controlling shareholder of Beijing Tongmei. AXT was listed on NASDAQ in May 1998 and has no specific business. It conducts research and development, production and sales of indium phosphide substrates, gallium arsenide substrates, germanium substrates, PBN materials and other high-purity materials through Beijing Tongmei. . Therefore, the issuance and listing of Beijing Tongmei is a spin-off of AXT main assets and all its businesses to be listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.